Corporate Social Responsibility Program

Corporate Social Responsibility (CSR) is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders. Social responsibility is a commitment by the business to act ethically, operate legally and contribute to improving the employees' quality of life, along with the local and wider community.

The Company is committed to CSR best practice and we have a range of programs where we contribute including anti-drugs campaigning, the broadcasting of government television channels, scholarships, the building of houses of worship and blood donation.

CSR 2016

Corporate Social Responsibility Relates to Social and Community Development Program

STOP Drugs Campaign

Source: www.beritasatu.com

Indonesia is the most populous country in South East Asia and international drug cartels may view it as a large target market for their contraband. According to data from the Indonesian National Narcotics Agency (Badan Narkotika Nasional (BNN)) there was a significant amount of drugs seized in 2015 including 1.9 tons of marijuana, 672,782 ecstasy tablets and 2.6 tons of methamphetamine. Despite these hauls of drugs its estimated that only 20% of drugs being imported are seized by police leaving a significant quantity on the streets.

There is an enormous social cost of illicit drugs including vast health problems, violent crime and the loss of productive members of society for a generation of drug users. Other than the enormous social costs of illicit drugs there is also a disasterous economic impact which was estimated at Rp63.1 trillion in 2014 alone.

The members of our Company, seeing the scourge of drugs and the negative social and economic ramifications that result, were encouraged to partner with BNN to educate the community about the negative implications of illicit drugs. We do this by regularly airing advertisiments on our tv channels that inform the public about the dangers of drugs and addiction, access to rehabilitation, how they can prevent their family and community being affected and how they can report drug related crimes. On 27 September 2016, the Company as part of the First Media Group has formed a partnership with BNN titled "Drugs Abuse Prevention Campaign - STOP Drugs".

Balai Kota Channel

Source: www.beritasatu.com

The Company provides the availability of the governments tv station ‘Balai Kota Channel’. This allows the government to educate and inform the public about government services in a format that is accurate and free from bias.

Broadcasts from the Balai Kota Channel include policy announcements, promotion of regional development and tourism. The Balai Kota Channel is evolving into a platform that Indonesians can use to convey their aspirations for their region and also give constructive criticism to the government. The goal of this tv station is to create an open line of communication between the government and their constituents which will hopefully lead to the faster resolution of problems and quicker implementation of government programs.

As of the end of 2016 the Company has a relationship in providing the Balai Kota Channel with 1 (one) provincial government, the Jakarta provincial government and the 3 (three) municipal governments of Bandung, Malang and Bogor. In 2017 the Company will expand our participation by establishing a relationship with the municipal governments of Medan and Batam.

Scholarship

Source: www.beritasatu.com

In 2016, the Company continued its commitment to providing scholarships for the Faculty of Nursing at the University of Pelita Harapan (UPH) which we began in 2015. We are proud to provide support for this scholarship program which will help pay for nursing students to receive professional training.

Based on data from the Ministry of Health, the number of nurses in Indonesia is on the increase. For example in 2013, there were 288,405 nurses and in 2014 this number increased to 295,508. Despite the continious incrase there is still an insufficient number of professional nurses to address the significant health needs throughout Indonesia.

Through this scholarship program, the Company contributes to improving the quality and competence of nursing professionals in Indonesia. The Company also hopes this scholarship program will increase young people’s interest in becoming professional nurses to meet the health demands of Indonesias.

In the second year of the scholarship, funds donated by the Company amounted to Rp 3 billion and we commit to continuing this payment in 2017 so that the total amount of awarded scholarships will be Rp 9 billion. These scholarships cover tuition fees and accommodation.

Construction of Houses of Worship

In 2016 the Company contributed Rp 300 million to the construction of HKBP Sudirman church. We are proud to support the building of stronger ties within the local community and to support houses of worship in their charitable work.

Blood Donation

According to the Ministry of Health and the World Health Organization (WHO), the minimum requirement of blood reserves to maintain effective health services in Indonesia is about 5,1 million bags per year. Currently there is a shortage of approximately 500 thousand bags per year. In an effort to correct this shortage and to have a positive affect on the health of Indonesians the Company has been proactive in organizing blood donor programs in partnership with the Indonesian Red Cross. In addition, it will increase employee awareness of the importance of blood donation and the benefit they can have on society. In 2016 the Company started a Social Responsibility Program and organized 6 (six) blood donor events in Jakarta and Tangerang.

Corporate Social Responsibility Relates to Labor, Occupational Health and Safety Program

Employment

In 2016 the Company implemented social responsibility programs to further strengthen the relationship between the Company and its employees. We believe that looking after the welfare of our employees is the foundation of building a trusting, productive and long term relationship. The Company’s financial goals are entwined with the welfare of our employees.

Employee Competency Development

To continually develop our staff the Company provides them with access to professional development in the form of courses, training and educational programs related to their field of work. This ensures the knowledge, expertise and technical ability of our staff is second to none in our industry.

The following is a schedule of the training conducted by the Company over the past two years:

Competency Development

2016

2015

Total Training

35

29

Total Participants

900

710

Health Service

The Company ensures that all members of staff, their spouses and children are covered by health insurance. We are proud to make this investment in the health of our employees and their families. The good health of our employees is essential to maintining a highly productive and satisfied workforce. To help our staff to maintain their health we provide periodical medical check ups.

The Company partners with Lippo Insurance as well as the Indonesian governments health program via the Social Security Organizing Body known as the “BPJS”. The provisions, the procedures and the amount of allowances and/or healthcare facilities are provided separately by a decision letter of the Board of Directors guided by the prevailing laws and regulations.

The following is the total cost incurred by the Company for employees health care in the past two years:

Employee Health Care Costs

2016

2015

Total (Rp)

6,730,968,256

7,876,726,929

Pension Program

Every employee who retires will receive a Pension Plan of the Company. The pension amount is in accordance with statutory provisions, except for employees who follow the plan with premiums/contributions paid by the Company.

The following is the Company's total expenditure on the pension program in the last two years:

Pension Program

2016

2015

Total (Rp)

3,792,373,113

4,237,503,056

Other Employment Responsibility Policy

In addition to the above policies, the Company will also provide benefits to employees who get married, employees and the direct families of employees who died and benefits for business travel. In the case of official travel to carry out tasks according to positions and functions, by training/seminar or other assignments as necessary, the Company provides the official travel costs.

Work Safety and Occupational Health

We wish to have a workplace free from accidents and without occupation illness. Work safety is about performing work duties without accident by creating and mainting a safe working environment.

Work safety can be related to machineries, tools, working equipment, materials, and working environment. Meanwhile, occupational health is the physical, mental and social conditions of the employees. We wish to protect our employees from diseases and health problems and be able to interact safely within its working environment.

Occupational Health and Safety (OH&S) Program

The Company’s occupational health and safety (OH&S) program is designed to train staff, vendors and contractors so they can perform their work activities using OH&S best practice. The OH&S programs are divided into the "Link Net Employee Program" and the "Link Net Company Working Partners Program".

The Link Net Employee Program trains employees in the importance of and best practice in job safety, awareness in ones workplace and how to use their tools and work materials correctly. The Link Net Company Working Partners Program focuses on installation and construction. The training given via these OH&S programs ensures we maintain best practice and most importantly a safe workplace for our employees.

CSR 2015

Corporate Social Responsibility Relates to Social and Community Development Program

Scholarship

Source: www.beritasatu.com

In 2015, the Company providing scholarships for the Faculty of Nursing at the University of Pelita Harapan (UPH) which will help pay for nursing students to receive professional training. The total amount of awarded scholarships will be Rp 9 billion for 3 years until 2017. In 2015, the funds donated by the Company amounted to Rp 3 billion.

Through this scholarship program, the Company contributes to improving the quality and competence of nursing professionals in Indonesia. The Company also hopes this scholarship program will increase young people’s interest in becoming professional nurses to meet the health demands of Indonesias.

Blood Donation

In 2015, the Company performed 6 (six) corporate social responsibility programs in Jakarta and Tangerang. Among the programs are blood donation programs in cooperation with the Indonesian Red Cross ("PMI"). According to PMI chairman Mr. Jusuf Kalla, Indonesia needs 5 million blood bags every year, which is equal to needs for two percent of the total population. The facts encourage the Company to actively hold blood donation programs as a part of efforts to help the government and PMI specifically. Moreover, the Company also encourage its employees to understand the necessity of donating blood.

Corporate Social Responsibility Relates to Labor, Occupational Health and Safety Program

Employee Competency Development

In 2015, the Company was conducting social responsibility programs for its internal environment. The Company and its human resources are mutual partners that support each other and provide contributon and harmonisation. Both parties determine the success and growth of the business.

As part of the attention from the Company to its employees, it provides hard skill and soft skill training to every employee to increase their competencies. The Company is committ to build a strong, competence leader that also has strong character to support the Company’s goal. Therefore we have a comprehensive development program that could build and enhance the employees leadership, competencies and skill for each staff.

In 2015 the Company succesfully running 4.880 training hours for Leadership and Managerial programs and 1.238 Training Hours for Technical Skill programs (working with our partner as part of their contribution to us). Total 594 employees are attending the program (78% from total population) with minimum 1.4 mandays/year.

Occupational Health and Safety (OH&S)

Work safety is an effort to exercise duties without accident, to give a safe working environment and to achieve advantageous results and free from accidents or occupational illness. Work safety is related to machineries/ tools/ working equipment/ materials/ working environment.

Meanwhile, occupational health is a physical, mental and social condition of the manpower, who are protected from diseases or health problems and are able to interact with its working environment.

The Company’s activities in the OH&S are reflected in various events, one of which was fire drills held on May 22, 2015. The event was conducted by the Company at the its operational premises in Lippo Cyber Park, Karawaci, Tangerang with 506 participants that consisted of employees, security guards and visitors.

CSR 2014

Blood Donation

In 2014, the Company performed 6 (six) corporate social responsibility programs in Jakarta and Tangerang. Among the programs are blood donation programs in cooperation with the Indonesian Red Cross (PMI). According to PMI chairman Mr. Jusuf Kalla, Indonesia needs 5 million blood bags every year, which is equal to needs for two percent of the total population. The facts encourage the Company to actively hold blood donation programs as a part of efforts to help the government and PMI specifically. Moreover, the Company also encourage its employees to understand the necessity of donating blood.

The Company’s social responsibility theme for this year based on the three programs is health and facilitating the educational process. The blood donor program started at the beginning of the year in February up to December, with a total number of 600 participants donating their blood to serve the public’s need for blood transfusion. In parallel, the Company also provided funding assistance to the Lentera Harapan School in Lampung to facilitate the educational process. The funding assistance has been made to the Lentera Harapan School in Lampung since 2012, but the Company remains committed to support the school for an additional two years period.
At the end of the year 2013, the Company rolled out its social responsibility program in the Integrated Islamic School of Darrutaubah (Sekolah Islam Terpadu Darrutaubah) in the city of Bekasi. As part of the Company’s contribution to improve the quality of education and knowledge of the students particularly through the internet, the Company built an internet connection network within the school’s computer lab that can be used free of charge for one year. The Company views that having the presence of internet connection network, particularly in school institutions, is a key component in the effort to improve the welfare of the community. As such, the Company hopes that through internet, the students of the Integrated Islamic School of Darrutaubah (Sekolah Islam Terpadu Darrutaubah) can expand their horizon and keep themselves informed on the development of technology and information.

CSR 2012

EDUCATIONAL SUPPORT
Cognizant that education is the key to improve the quality of the next generation, the Corporate Social Responsibility (CSR) Committee decided to focus the Company’s CSR program CSR more on the education sector. The elected CSR program was the provision of internet connection facility, given that the internet provides an avenue that can help improve the quality of education which in turn can help improve the country’s level of education. It is anticipated that the internet will provide greater access for the school administrators and the students to obtain any information that they may need to advance the educational process.
Providing Internet Connection / Access for the Lentera Harapan School (Sekolah Lentera Harapan). Internet installation in the Lentera Harapan School (Sekolah Lentera Harapan) in Koja was done on Tuesday, July 31, 2012 at the school’s computer lab. The computer lab was equipped with one FastNet Express modem, 1 router D-Link 24 port, 14 Personal Computers (9 at the Lab room, 2 at the lounge room and 3 at the office room).

Internet installation for the Lentera Harapan School (Sekolah Lentera Harapan) in Curug Karawaci was done on Thursday, August 16, 2012, at the following locations:
1. At the computer lab for Junior High School and Senior High School students on the 1st Floor, with 15 computer units made available.
2. At the computer lab for Kindergarten and Elementary School students on the 2nd Floor, with 25 computer units made available.
3. At the library on the 2nd floor, with 1 computer unit made available.

LENTERA HARAPAN SCHOOL IN LAMPUNG (SCHOOL ADOPTION)
The Lentera Harapan School (Sekolah Lentera Harapan) in Jati Agung, Lampung was the first school established by the Pelita Harapan Foundation. The school is located far from the city center, offering very limited school facilities. This school was established with a mission to provide opportunities for the children of Pengadilan Jati 2, South Lampung to access quality education.
1. Establishment of Sport Facility
Having a sport facility is crucial in supporting the school’s development process. To that end, the Company is committed to develop sporting facilities that can be used not only by the school, but can also serve as a sporting facility for the school’s surrounding community. This is an essential measure to get the school and its surrounding community closer to one another by creating a more harnonious relationship that can help further the development of the Lentera Harapan School (Sekolah Lentera Harapan) in Jati Agung, Lampung. Having discussed with the Pelita Harapan Foundation and identified the two sporting facilities need of the school, the Company is focusing its commitment to develop the badminton and basketball courts.
2. Funding Contribution
The Company fully supported the operational activities of the Lentera Harapan School (Sekolah Lentera Harapan) in Jati Agung, Lampung through the provision of two years worth of school funding, namely for the period between September 2012 and August 2014.

BOOK DONATION
The Company also invited and encouraged its staffs to contribute through the monthly “Book Donation” initiative. The CSR initiative rolled out in a 3 month period under the “Share Your Books Preserve the Life of the Children” slogan succeeded in collecting a total donation of 174 book titles, comprising of 107 reading materials for Kindergarten - Elementary School levels, 17 units of academic materials for Elementary School level, 40 units of academic materials for Junior High School – Senior High School levels and 10 units of academic materials for Junior High School – Senior High School levels. The books collected through the initiative were donated to a group of schools around the Karawaci area.

BLOOD DONATION
Initiatives to preserve human lives are also among the Company’s top concerns. The blood donation program is rolled out regularly once every 3 month by the CSR committee under the “Donate Your Blood Preserve Life” slogan. The initiative takes place at two main locations in the Company’s operational office at Citra Graha and Cyber Park Karawaci. The level of staffs’ participation in the blood donor program is very high as evident from the number of staffs registering or registering and providing blood donation.